President-elect Donald TrumpThe transition team is reportedly considering terminating US Postal Service (USPS) contracts to electrify its delivery fleet.

What happened: The move could be announced in the first days of Trump’s new administration, Reuters reported, citing multiple sources familiar with the matter.

The transition team is considering how to roll back the Postal Service’s many expensive contracts, including with Ford Motor Co F And Oshkosh OSK for battery-electric delivery vans, the report says. According to Reuters, a breach of the contracts would be a legal challenge because the federal agency has its own board of directors.

Benzinga has reached out to USPS, Ford and Oshkosh for comment but has not yet heard back.

Why it matters: The US Congress allocated $3 billion to the USPS in 2023 to purchase electric vehicles and charging infrastructure. The federal authority plans to purchase around 66,000 electric vehicles by 2028.

Trump said during the campaign that he would reverse the Biden administration’s push toward electrification.

Reuters previously reported that his transition team also plans to eliminate $7,500 in consumer tax credits for electric vehicle purchases.

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Photo courtesy: USPS